SWITCH-Asia

The Challenge

 Based on the experience and findings of the EU SWITCH-Asia funded SUSTOUR Laos  project (2020-2024), previously implemented by Plan International in cooperation with the Lao National Chamber of Commerce and Industry (LNCCI), European Centre for Eco and Agro Tourism (ECEAT), Travelife and the Ministry of Industry and Commerce (MoIC), tourism provides an important income source for MSMEs, offers employment for women and young adults (YAs), and presents significant opportunities for innovation in SCP and circular economy practices. However, growth of tourism related sectors creates challenges, including: environmental protection; resource and energy use; waste management, particularly single-use plastic (SUP) waste; carbon emissions; and poor labour standards. The SUSTOUR Laos project had identified first movers for SCP and circular economy practices and established a network of more than 300 MSMEs who have registered in the Travelife and Lasting Laos sustainability certification programmes. However, MSMEs in Laos still struggle to understand concepts of SCP and circular economy or comply with international standards and access finance, particularly green financing instruments (GFIs). Further investment in and technical assistance for MSMEs in the tourism value chain are needed and essential to the green growth of the Lao economy.

The Lasting Laos project builds upon and scales-up key aspects of the SUSTOUR Laos project, particularly the Lasting Laos sustainability certification programme, developing green products and services, tackling single-use plastic (SUP) waste and access to finance for MSMEs in the tourism value chain. Focusing on key tourist destinations and urban centres with the highest concentration of MSMEs (Vientiane Capital, Luang Prabang Province, Vientiane Province) while expanding and scaling-up to one additional province (Champasak Province), the project contributes to the tourism value chain in its growth, ensuring MSMEs are sustainable, non-polluting and contributing to the sustainable livelihoods of Lao women, men and children. Plan International and its partners will do this by promoting and standardizing sustainability certifications, bringing MSMEs in a variety of tourism related sectors into the green transition of the economy. The Lasting Laos certification provides tailored support for MSMEs, equipping them with the knowledge and skills to transform their businesses towards circular economy, decent work and SCP practices while creating spaces and opportunities for young entrepreneurs to innovate in these areas. The project creates a foundation for replication and scaling-up across other sectors the Lao economy and ultimately aims to cultivate a movement for environmentally and socially conscious entrepreneurship and investment in the Lao tourism value chain.

The Objectives

Contribute to Laos 9th Five-Year National Socio-Economic Development Plan, National Green Growth Strategy, Sustainable Consumption and Production Roadmap and the EU’s New Green Deal by supporting Micro, Small and Medium Enterprises and young entrepreneurs in the Lao tourism value chain to adopt and promote SCP, circular economy and decent work practices.

The Way Forward

The project will support target MSMEs to adopt low-carbon, circular economy and decent work practices; support young entrepreneurs to develop green products and services demonstrating innovation in circular economy practices; support MSMEs and young entrepreneurs to access green financing instruments that responds to their needs; strengthen and/or develop relevant government policy and programmes for responsible business practices and green financing instruments; and disseminate successful business cases to inspire young adults and propose to investors, promoting replication and scaling-up.

• 200 MSMEs (50% are female-owned) registered in the Lasting Laos certification programme;
• 75 MSMEs become Lasting Laos certified and thereby provide decent, youth and gender-responsive workplaces;
• 1 additional sector (agri-food processing and packaging) is included in the Lasting Laos certification programme;
• 30 of public and private sector association representatives receive training to implement the Lasting Laos certification;
• 12 proposals made to Government of Lao PDR to either change existing or develop new policies and regulations relevant to the action;
• 50 MSMEs and 50 young entrepreneurs (50% are female) are able to access financial services;
• 1,000,000 Euros of green financing provided to MSMEs and young entrepreneurs from the Lasting Laos grant matching programme and local FSPs;
• 50 young entrepreneurs are supported to develop green products, services and solutions;
• 80 MSMEs are supported with technical assistance to reduce their resource use and implement green solutions;
• Reduction in the resource use of target MSMEs: (a) 20 % SUP waste; (b) 20% water use; (c) 10% electricity use;
• 500,000 Euro additional investment in target MSMEs and YEs from other investors;
• 1000 young adults are reached to promote and inspire entrepreneurialism and careers in tourism related sectors.

Relation to European Green Deal, Circular Economy and Climate Change

The Lasting Laos project aligns closely with EU priorities and the European Green Deal by promoting sustainable economic growth through circular economy principles, responsible consumption and production, and decent work practices in the tourism sector. It directly supports the EU’s commitment to climate neutrality by reducing carbon emissions through improved resource efficiency, sustainable business practices, and innovation in green products and services. By helping MSMEs adopt sustainable business models, the project contributes to the transition towards a low-carbon economy, tackling climate change through targeted reductions in single-use plastics (SUPs), water and energy consumption, and overall environmental impact. The project also fosters green financing mechanisms, ensuring that businesses have the financial support needed to implement climate-friendly solutions. Furthermore, Lasting Laos complements the EU’s global sustainability agenda by integrating social inclusion and gender-responsive economic opportunities, empowering women and young entrepreneurs to drive the green transition. Through policy advocacy and certification programmes, the project strengthens local regulatory frameworks, ensuring long-term sustainability and alignment with EU-led environmental and economic policies.